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Old 08-20-2015, 05:33 PM
 
10,357 posts, read 7,974,037 times
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I'd like to know why real cheese in Canada is so expensive. Sargento vs Baldersons --- the Baldersons has to be be about double the price. Even Laughing Cow cheese, which is made in Canada, is substantially cheaper in Florida for example, and it needs to be trucked all the way to Florida, so why wouldn't that make it more expensive there?

I guess the same reason that Canadian made cars cost more in Canada than in the U.S. And this was even when the Canadian dollar was doing better.

Because Canadians are being ripped off!
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Old 08-21-2015, 12:39 AM
 
Location: Alberta, Canada
2,166 posts, read 1,749,261 times
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Quote:
Originally Posted by ellemint View Post
I'd like to know why real cheese in Canada is so expensive. Sargento vs Baldersons --- the Baldersons has to be be about double the price. Even Laughing Cow cheese, which is made in Canada, is substantially cheaper in Florida for example, and it needs to be trucked all the way to Florida, so why wouldn't that make it more expensive there?

I guess the same reason that Canadian made cars cost more in Canada than in the U.S. And this was even when the Canadian dollar was doing better.

Because Canadians are being ripped off!
No, Canadians are not being ripped off. They are paying what the market will bear. This is Economics 101: people will pay what the market will bear. If Canadians feel that they are charged too much for those Lexuses built in Cambridge, Ontario, then they won't buy them. They do buy them; therefore, Canadians do not feel that they are being charged too much for them. The same applies to all manner of consumer goods, including Balderson's cheese. Canadians buy all kinds of things domestically without feeling that they are being ripped off.

Canada's problem is its large space and small market. If I (in Alberta) buy a refrigerator from Home Depot, will it come from a warehouse in Calgary? No, it will most likely come from a warehouse in Toronto, 2000 miles away. Shipping costs add to the price I pay here in Alberta.

Bottom line is, it is uneconomical for a merchant to have warehouses/distribution centres in Vancouver, Calgary, Winnipeg, Toronto, Montreal, and Halifax, to serve 33M people. One central warehouse will do, and it is usually in eastern Canada. But, it is entirely economical for a merchant to have warehouses in LA, Seattle, Dallas, Chicago, St. Louis, Atlanta, NYC and Boston to serve 330M people.

I do not know any Canadian locally who feels that they are being "ripped off" by Canadian prices. Most have no knowledge of American prices; therefore, they are not being ripped off at all-- they are simply paying what the local market demands and will bear. In my experience, the only people who complain about prices in Canada are Americans--certainly, my income allows me to buy what I like, and set a little aside for retirement besides. Isn't that what Americans do too?

Last edited by ChevySpoons; 08-21-2015 at 12:50 AM..
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Old 08-22-2015, 06:51 PM
 
10,357 posts, read 7,974,037 times
Reputation: 4547
Quote:
Originally Posted by ChevySpoons View Post
No, Canadians are not being ripped off. They are paying what the market will bear. This is Economics 101: people will pay what the market will bear. If Canadians feel that they are charged too much for those Lexuses built in Cambridge, Ontario, then they won't buy them. They do buy them; therefore, Canadians do not feel that they are being charged too much for them. The same applies to all manner of consumer goods, including Balderson's cheese. Canadians buy all kinds of things domestically without feeling that they are being ripped off.

Canada's problem is its large space and small market. If I (in Alberta) buy a refrigerator from Home Depot, will it come from a warehouse in Calgary? No, it will most likely come from a warehouse in Toronto, 2000 miles away. Shipping costs add to the price I pay here in Alberta.

Bottom line is, it is uneconomical for a merchant to have warehouses/distribution centres in Vancouver, Calgary, Winnipeg, Toronto, Montreal, and Halifax, to serve 33M people. One central warehouse will do, and it is usually in eastern Canada. But, it is entirely economical for a merchant to have warehouses in LA, Seattle, Dallas, Chicago, St. Louis, Atlanta, NYC and Boston to serve 330M people.

I do not know any Canadian locally who feels that they are being "ripped off" by Canadian prices. Most have no knowledge of American prices; therefore, they are not being ripped off at all-- they are simply paying what the local market demands and will bear. In my experience, the only people who complain about prices in Canada are Americans--certainly, my income allows me to buy what I like, and set a little aside for retirement besides. Isn't that what Americans do too?
Still doesn't explain why Canadian products are often cheaper in the U.S. than in Canada.

Like the aforementioned Laughing Cow cheese. Surely it costs more to transport this cheese to Florida than it does Ontario. But it's cheaper in Florida.
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